Legislature(1999 - 2000)
04/05/2000 09:09 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 5, 2000
9:09 AM
TAPES
SFC-00 # 77, Side A & B
CALL TO ORDER
Co-Chair John Torgerson convened the meeting at
approximately 9:09 AM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Lyda Green, Senator Pete Kelly,
Senator Loren Leman, Senator Randy Phillips, Senator Gary
Wilken, Senator Donley.
Also Attending: MARY JACKSON, Staff to Co-Chair Torgerson;
THOM WYLIE, Labor Economist, Research & Analysis,
Department of Labor & Workforce Development; ED FLANNIGAN,
Commissioner, Department of Labor and Workforce
Development; SENATOR WILKEN; KEVIN DELANEY, Director,
Division of Sport Fisheries, Department of Fish & Game; MAC
MINARD, Interior Regional Supervisor, Division of Sport
Fish, Department of Fish & Game; SENATOR MACKEY; ANGIE
SCHMITZ, Staff Aide to Senator Kim Elton; Senator Kim
Elton.
Attending via Teleconference: From Fairbanks: ALLEN
BARRETTE; LYNN LEVENGOOD; MARK HEM; JOE HART, Ahtna
Incorporated, Board of Directors, Chitina Native
Corporation; From Anchorage: MARY WEISS, Registered Nurse,
Alaska Nurses Association; MAGGIE FLANAGAN, Health and
Safety Officer, Providence Registered Nurses Bargaining
Unit; CAROL CLAMSSON, Registered Nurse; WANDA KATINSZK,
President, Alaska Nurses Association; From Glenallen: WANDA
KATINSZK, President, Alaska Nurses Association; From
Glennallen: DONNA LIBEL, Employee Health and Infection
Control Nurse; Via Offnet: DR. ROB ROBINSON; MARTHA
RINGOLD, Executive Director, Alaska Dental Society.
SUMMARY INFORMATION
SB 289-TECH & VOC EDUC/EMPLOYMENT ASSISTANCE
The Department of Labor & Workforce Development testified.
The amended bill was moved from committee.
SB 301-CHITINA DIPNET FISHING PERMIT
The sponsor testified, along with members from the public.
The bill was held in committee.
SB 288-APPROVE CLARKE BAY TERMINAL AGREEMENT
The sponsor testified. The bill was moved from committee.
SB 261-PREVENTION OF NEEDLE & SHARPS INJURIES
The sponsor testified, along with members from the public.
The bill was held in committee.
[Tape Malfunction]
The Senate Finance Secretary was able to recreate the first
part of this testimony with the aid of notes and
legislative staff input. The recording of this meeting
commences at the beginning of Side A of tape number 77.
CS FOR SENATE BILL NO. 289(L&C)
"An Act establishing and relating to the Alaska Board
of Technical and Vocational Education; and providing
for an effective date."
MARY JACKSON, Staff to Co-Chair Torgerson reviewed changes
to the Committee Substitute, Version 1-LS1525\S. She noted
that there were no changes to Sections 1 or 2, but in
Section 3, page 3, line 23, the language "two-tenths of one
percent" was substituted for ".0015 percent." She added
that Subsection (b) was new and on page 4, line 18, a
substantive revision of the previous language was
undertaken. Ms. Jackson then read this language as
follows: "the entity has secured matching funds for the
program for which the Grant is requested." She summarized
that in Section 4, on page 6, lines 2 - 4 the percentages
for capital improvements changed to 76 percent for the
University of Alaska, 8 percent for Kotzebue Technical
Center, and 16 percent for the Alaska Vocational Technical
Center.
Co-Chair Parnell asked about the percentage rate stated in
Sec. 23.15.835 on page 3, line 23.
Ms. Jackson responded that these percentages were based on
back up materials provided for the Committee entitled,
"Discussion of the Need for Supportive Services" and "Basic
Parts of Unemployment Insurance (UI) Tax Rate Calculation."
[Copy on File.]
Senator Green asked about the current policy for employer
contributions.
Co-Chair Torgerson referred to the backup entitled "Basic
Parts of Unemployment Insurance (UI) Tax Rate Calculation,"
and added that if the fund for trust solvency drops below
the actuarial, the employer makes up the difference.
Senator Green asked if the employee contribution was
calculated at the beginning of each year.
Co-Chair Torgerson stated that this rate was set every year
and he gave a rundown of how this program works. He noted
that is allowed for the diversion of another two-tenths of
one-percent for a new training program. He added that
taking this and a deposit into the trust, the employer can
make the necessary adjustments.
THOM WYLIE, Labor Economist, Research & Analysis,
Department of Labor & Workforce Development stated that any
diversion of funds away from the trust has a tendency to
make the fund fall. He added that if this fund falls below
solvency, an adjustment is made at step two in the
calculation, which comes out of the employer contribution.
He pointed out that each year the calculation, a benefit
cost rate, is split between employer and employee and if
this amount is higher or lower, the employer tax rate is
raised or lowered.
Senator Green asked if every state employer participated.
Mr. Wiley responded that everyone that is taxable out of
the Department of Labor & Workforce Development.
Co-Chair Parnell made a motion to move CSSB 289, Version 1-
LS1525\S as the working bill.
Co-Chair Torgerson hearing no objection, adopted this
draft.
Amendment #1: This amendment deletes old and inserts new
language as follows:
Page 6, line 2 through 4 amend to:
University of Alaska [80] 76 percent
Kotzebue Technical Center [4] 8 percent
Alaska Vocational Technical Center 16 percent
Senator Wilken made a motion to adopt Amendment #1. He
gave an overview of these figures, adding that these
changes would double the amount of money allocated to
Kotzebue.
Senator Phillips asked why this money was limited to these
specific schools. He objected to the Committee making
these very specific selections.
Co-Chair Torgerson responded that these three educational
entities conduct 90 percent of vocational training in the
state. He added that these monetary designations were a
one-time allotment.
Senator Green stated that she did not necessarily approve
of how the percentages were calculated. She asked how this
determination was made and wondered if by making these
designations, whether it would take the Alaska Human
Resources Investment Council (AHRIC) out of compliance.
Co-Chair Torgerson responded that this legislation does not
affect AHRIC. He noted that this program's board was run
by the membership, rather than the entire program and he
added that the related system was mandated by the federal
government.
Senator Wilken responded to Senator Phillips concerns about
funding allocations. He made the argument that if the
Committee funded all the vocational programs in the state,
it would make it harder to hold these entities accountable
for how the monies are used.
Senator P. Kelly felt as though these allocations were a
good start to funding needed vocational programs around the
state.
Senator Phillips objected to Amendment #1.
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,
Senator P. Kelly, Co-Chair Parnell, Co-Chair Torgerson.
OPPOSED: Senator Phillips.
The MOTION PASSED (7-1)
Amendment #2: This amendment adds new language to page 4,
line 9, after the word "requirements," the following: ",the
Grant program is physically located in Alaska."
Co-Chair Parnell made a motion to adopt Amendment #2.
Co-Chair Torgerson gave background information on this
amendment.
Senator Phillips asked if this amendment would eliminate
any programs for students within the state that do not
exist in state. He used the example of the Coast Guard
Academy in Seattle.
Co-Chair Torgerson responded that yes, this would be true
if the program was not physically located in Alaska.
Senator Phillips asked where the State Training Employment
Program (STEP) money as previously noted goes now.
ED FLANNIGAN, Commissioner, Department of Labor and
Workforce Development stated that he was not specifically
sure. He noted that with the current Step system, other
programs are able to access it.
Co-Chair Torgerson hearing no objection ADOPTED Amendment
#2.
Co-Chair Parnell made a motion to move SB 289 from
Committee with individual recommendations.
Senator Green objected.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips, Senator Leman, Senator Adams,
Senator Wilken, Senator P. Kelly, Co-Chair Parnell, and Co-
Chair Torgerson.
OPPOSED: Senator Green.
The MOTION PASSED (7-1)
Co-Chair Torgerson reiterated that SB 289, Version 1-
LS1525\S was MOVED FROM COMMITTEE as amended, with
individual recommendations and two fiscal notes, one from
the Department of Labor and Workforce Development for
$4,553,800 and the other from the University of Alaska for
$6,450,000.
CS FOR SENATE BILL NO. 301(RES)
"An Act relating to the Chitina dip net fishing
permit; and providing for an effective date."
SENATOR WILKEN stated that this legislation would generally
give individuals legal access to the Chitina Dipnet
Fishery, while minimizing impact to private landowners. He
read a statement into the record and referred to a map
entitled, "Copper River Railroad Right-of-Way and
Approximate Land Ownership (Chitina and Ahtna Native
Corporations)[copy on file.]
Senator Wilken explained that the Chitina fishery is one of
the largest in the state. He added that over 10,000
household permits are issued each year, with approximately
20,000 - 30,000 Alaskan residents participating. He noted
that approximately 118,000 Salmon are harvested as a
result. He informed the Committee that in December 1999,
the Alaska Board of Fisheries reclassified the Chitina
Personal Use Fishery to a Subsistence fishery. He noted
though that the designation of the dip net fishery as
subsistence will have little impact on the way the fishery
is managed and has little to do with the need to secure
public access and provide services.
Senator Wilken continued that regulations governing the
Chitina Fishery require people to have a permit issued by
the Department in their possession. He noted that this
permit serves as the harvest record. He referred to AS
10.05.340(a)(22), which sets a fee for a "Chitina Personal
Use Dip net Permit" at $10.00, a fee, which has been in
place since 1990. He noted a chronological history of the
fishery in the bill packet. He added that proceeds from
this fee go the Fish and Game fund and have been used to
pay Chitina & Ahtan Native Corporations for access across
their lands and for outhouse and garbage services. He
noted that an agreement between the Department of Fish and
Game and the Corporations determines the percentage
distribution and services.
Senator Wilken informed the Committee that SB 301 amends
the existing statute by renaming the "Chitina Personal Use
Salmon Dip net fishing Permit" to "Chitina Dip net fishing
Permit," and increases the permit fee from $10.00 to
$25.00. He continued that this legislation changes the
name of the permit by removing the words "personal use," as
it is no longer a "personal use" fishery. He explained
that this legislation changes the fee to coincide with the
new agreement reached between the Corporations and the
Department of Fish and Game. He added that this new
agreement is intended to provide for maximum legal public
access to the dip net fishery while minimizing conflicts
between the private landowners and the fishermen at
Chitina.
Senator Wilken continued that in the year 2000, dip-netters
will pay $25.00 for their permit. He noted that since the
fishery is now designated a subsistence fishery there is no
requirement for a sport-fishing license to fish there. He
added that in 1999, people were required to have a $15.00
sport-fishing license and the $10.00 Chitina permit, for a
total expense of $25.00. He explained that under this new
plan, only the proposed $25.00 Chitina permit will be
required.
Senator Wilken remarked that since the Chitina permit is a
household permit, families could save under this plan. He
pointed out that a family of two adults paid a total of
$40.00 last year, and this year it will only be $25.00. He
asserted that services will be significantly increased and
improved over past years and access to the Native lands is
more identified than in previous agreements. Finally, he
declared that permits will be available from department
offices in Anchorage, Palmer, Fairbanks, Glennallen and
Chitina, which will make it easier and faster to obtain a
permit, while decreasing the management costs to the
Department of Fish & Game.
KEVIN DELANEY, Director, Division of Sport Fisheries,
Department of Fish & Game stated that Senator Wilken had
done an excellent job in explaining the history related to
and the need for this legislation. He noted that the
permit, as part of this legislation, was designed for
access. He noted that the division had two areas to
comment on, the first being how enforceable this
legislation will be once codified in law and how the
department will be able to manage this fishery as a result.
He added that they would like to see the removal of seniors
from permit requirements as well.
Co-Chair Torgerson asked why the creation of another
position at $44,000.00 was necessary as part of this
legislation.
Mr. Delaney deferred to someone else who might be able to
speak to this from a more informed position.
Senator Phillips asked about a 300-foot right-of-way in
this area.
MAC MINARD, Interior Regional Supervisor, Division of Sport
Fish, Department of Fish & Game stated that he was aware of
a conceptual plan being considered regarding an upgraded
bike path in the area of this fishery. He added that this
plan was still uncertain. He stated that there is
supposedly a 300-foot right-of-way for access to this
fishery and in 1992, the court tried to clarify its
location to no avail. He added that this present
legislation provides for a one-year agreement for access to
this fishery, but noted that the adjoining land is a
patchwork of public and private land. He continued that
the related sanitation services in the area were adequate
years ago, but not now. He added that budget, personal
services, and fiscal set aside funds were germane to this
fishery. He continued that this legislation allowed for a
stand-alone budget, which is intended to provide for
issuance of permits and the management of the fishery. He
summed up that the position in the fiscal note is not a
new, but an old position.
Senator Phillips asked if this right-of-way affects the
dipnet fishery.
Mr. Minard responded that this 300-foot right-of-way runs
across various segments of land and to the extent it
affects is uncertain.
Co-Chair Torgerson referred to a letter that spoke to
traffic and tourists, something that would definitely have
an impact on this fishery.
ALLEN BARRETTE testified via teleconference from Fairbanks.
He stated that he was concerned about the bill, by the
potential legality of changing this fishery from "personal
use" to "dip net" and the charge of an access fee. He
noted that it was hard to license people to fish and that
he was uncomfortable with the precedence to landowners in
Alaska for hunting and fishing rights.
LYNN LEVENGOOD testified via teleconference from Fairbanks.
He noted that he was an attorney and felt that this was not
a good bill. He thought it created a legally indefensible
position. He noted how this was really a subsistence
fishery and the proposed legislation outlines a license
fee of $25.00 for this right. He also pointed out that
segments of the river, north and south of this location,
were unlimited subsistence locations, without limits to
user fees.
MARK HEM testified via teleconference from Fairbanks. He
referred to a "hold harmless" clause in the existing
agreement. He read the language. He wondered if the state
would have to pay for the Chitina Corporation's legal fees
to defend the proposed access. He noted the increased user
fees at $25 per participant. He reported that he and his
father are property holders in the area of this fishery.
He stated that many people cross their property in order to
access the river. He outlined all the nuisances that this
access can bring. He wondered if he should charge access
costs for these participants.
Co-Chair Torgerson stated that he was in receipt of Mr.
Hem's father's letter [copy not provided.] Co-Chair
Torgerson noted both father and son's concern about
increased access on their property because of this proposed
right-of-way.
Mr. Hem made the point that he and his father, as property
owners, are in no different position than the Chitina
Native Corporation. He continued that the corporation is
simply representing their own interests. He felt it was
wrong for the state to partition his property or his
father's for individuals crossing their land, but that it
should be left up to them as property owners as to what is
in their best interest. He summarized that in lieu of any
decision made about their property, he and his father would
welcome being included in the present contract between the
state and Chitina Corporation, in order to receive a check
twice a year from the state.
Senator Phillips asked how much land each of these
individuals owned and for how long. A conversation ensued
between Mr. Mark Hem and Senator Phillips regarding the
particulars of this property as referenced.
Mr. Hem read a letter that Erling Hem, Sr. wrote for the
record, which was forwarded to the committee. This letter
gave an overview of Mr. Hem's concern, mainly that Native
Corporation landholders would receive money from the state
for access to this fishery, in exclusion of other
landowners. He spoke about the inconveniences created by
people accessing his land and the property owner's right to
protect their property. He took offense with the Native
Corporations receiving money from the state for this
fishery access [Copy not provided.]
JOE HART, Ahtna Incorporated, Board of Directors, Chitina
Native Corporation testified via teleconference from Matsu.
He stated that he felt a bit under attack by some of the
comments made thus far and noted that these comments did
not accurately reflect the situation. He stated that the
new fee issued by Fish and Game would compensate landowners
for impacts to property. He spoke to the environmental
impacts to land made by permit users and noted that the
fees would be used to mitigate these impacts. He addressed
concerns raised by other witnesses.
Senator Wilken proposed a conceptual amendment as a result
of the Resource Committee's actions. He generally noted
that this amendment would deal with the permanent
identification card for senior citizens and explained that
a holder of this card would not be required to pay permit
fees. He continued that a permit is necessary since it
aids in reflecting harvest data. He noted that this
conceptual amendment would reflect that these individuals
would not have to pay for the permit, but would be required
to carry one for data purposes.
Senator Leman asked if a vendor would be paid to issue
Chitina permits and if so, he wondered about the related
financial ramifications.
Mr. Delaney responded that the Department of Fish and Game
does not presently pay a vendor to issue these permits. He
added that this option was presently being discussed.
Senator Leman asked if it would make more sense to charge
the equivalent of the vendor fee for this permit.
Mr. Delaney stated that there were many aspects to consider
when making this determination.
Senator Leman asked if the change from personal use to
subsistence affected the harvest limits within the Chitina
Dipnet area.
Mr. Delaney responded that yes, in one regard. He
continued that once the Board of Fisheries allowed
customary and traditional use of salmon in this area. He
the department analyzed the need, while looking at
historical harvest areas He noted, as a result of this
analysis, it was decided that the total numbers of salmon
harvested did not have to be changed. He then went into
lengthy detail about those characteristics that could
affect this overall harvest number.
Co-Chair Torgerson asked if there was any objection to the
conceptual Amendment #1. Hearing none, it was so ADOPTED.
Senator Phillips asked if the access issue afforded by this
legislation affected individuals, corporations or
otherwise, beyond those named specifically.
Mr. Delaney responded that the department has negotiated
with the two major landowners in the area, but no one else.
Senator Phillips asked why this was so.
Mr. Delaney responded that the department is trying to
secure legal and practical access to this fishery, not to
mention garbage and human waste disposal to handle the
sheer number of participants.
Co-Chair Torgerson ordered SB 301 HELD in committee.
SENATE BILL NO. 288
"An Act authorizing the Department of Transportation
and Public Facilities to enter into an agreement with
the Inter-Island Ferry Authority regarding the
operation of the Clarke Bay Terminal, Prince of Wales
Island."
SENATOR MACKEY, as sponsor stated that the communities of
Prince of Wales Island, Wrangell and Petersburg formed an
Inter-island Port Authority to own and operate their own
ferries for this area. He noted that funding for this
project has come from both the federal and state
governments. He added that this project must be approved
by the legislature in order for it to go forward. He then
outlined the particulars of this project, including costs
and construction objectives.
Senator Green made a motion to move SB 288, 1-LS1524\A from
committee.
Co-Chair Torgerson hearing no ojection, SB 288 was MOVED
FROM COMMITTEE.
CS FOR SENATE BILL NO. 261(HES)
"An Act relating to needle stick and sharps injury
protections and the use of safe needles by health care
facilities and health care professionals; relating to
the vaccination of health care workers against
diseases transmitted by blood borne pathogens; and
providing for an effective date."
ANGIE SCHMITZ, Staff Aide to Senator Kim Elton testified
that SB 261 brings needed protection to health care workers
for accidental needle stick injuries. She outlined what
types of injuries can result from these accidents and the
numbers of health care workers affected. She noted that
there are a number of needle devices on the market that
have been approved by the FDA, but nationwide only 15
percent of hospitals use these devises, since they are more
expensive. She added that this legislation allows for
health care facilities to evaluate safer devices and
triggers new regulations requiring the use of these when
appropriate. She continued to outline some of the more
particular aspects of this legislation.
Senator Kim Elton referred to this legislation's sponsor
statement. He added that this legislation dealt with a
health problem that is capable of being solved.
Tape: SFC - 00 #77, Side B, 10:43 am
Senator Elton outlined how this legislation had changed
from the "D" version to the "H" version. He noted that
dentists and related health care providers are exempt. He
continued that the six-month evaluation period language was
removed and that the evaluation committee would determine
an appropriate time for review. He cited technical
changes, such as, wording clarification regarding the
Product Evaluation Committee and language concerning the
product evaluation.
Senator Leman asked about the exemption for dentist, and
asked if he had considered an exemption for small rural
clinics. He also mentioned the Open Source Health Care
Alliance (OSHCA) requirements and how this legislation
might be onerous for those entities that are meeting these
other requirements.
Senator Elton responded that this was a concern, but made
mention of the educational requirement allowed in this
particular legislation, which will enhance the efforts of
this legislation.
Senator Wilken made a motion to adopt the committee
substitute for SB 261, version 1-LS1175\K. Hearing no
objection it was so adopted.
MARY WEISS, Registered Nurse, Alaska Nurses Association
testified via teleconference from Anchorage in support of
this legislation.
MAGGIE FLANAGAN, Health and Safety Officer, Providence
Registered Nurses Bargaining Unit testified via
teleconference from Anchorage in support of SB 261. She
noted that health care workers do die from these injuries.
CAROL CLAMSSON, Registered Nurse, testified via
teleconference from Anchorage in support of SB 261.
WANDA KATINSZK, President, Alaska Nurses Association,
testified via teleconference from Anchorage in support of
SB 261. She urged the passage of this legislation in the
interest of all health care professionals in Alaska.
Senator Leman referred to his original question about OSHCA
requirements and the burden on rural clinics.
Ms. Katinszk referred to literature that outlines how cost
effective these needle stick devices are in the long run,
even though they are expensive. She pointed out that
preventively these devices save money.
DONNA LIBEL, Employee Health and Infection Control Nurse,
testified via teleconference from Glennallen in support for
this legislation. She gave an overview of local infection
rates.
DR. ROB ROBINSON testified via Offnet and voiced his
support for the exclusion of dentistry from this
legislation.
MARTHA RINGOLD, Executive Director, Alaska Dental Society
testified via Offnet and concurred with comments made by
Dr. Robinson.
Co-Chair Torgerson ordered SB 301 HELD in committee.
ADJOURNED
Senator Torgerson adjourned the meeting at 3:40 AM
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